KEY TAKEAWAYS
Polkadot dropped 35% in October, marking a new low amid persistent selling pressure.
DOT has fallen below the support line, reinforcing the likelihood of further downside.
A rebound above the 0.236 Fib level could invalidate the bearish outlook in the short term.
After a 35% drop in October, the Polkadot (DOT) price has entered November under sustained bearish pressure.
Since its 2021 high, the coin has struggled to regain that peak.
At the time of writing, the token trades at $2.76, marking a new all-time low. It has struggled to reclaim key support levels, while technical indicators continue to reflect weak momentum and fading capital inflows.
Oversold Region Ahead
As DOT trades just above its multi-month low, traders will be watching closely to see whether the asset can stabilize for an upward reversal or if further decline lies ahead.
On the 4-hour chart, DOT’s Relative Strength Index (RSI) sits at 35.47, showing weakening bullish momentum. It hovers below the neutral zone, edging toward oversold territory.
A drop below 30 could confirm extended downside pressure, increasing the likelihood of another leg down to the overbought threshold of 20 before any meaningful DOT price rebound.
Furthermore, CCN observed that the altcoin was previously trapped in a symmetrical triangle. However, as of this writing, Polkadot’s price has dropped below the lower trendline of the pattern.
Similarly, the Money Flow Index (MFI) records 45.63. This shows that liquidity inflows remain subdued while selling pressure builds.
Although neutral, the reading leans bearish, indicating that market participants are not ready to re-enter the market aggressively after last month’s 35% slide.
Together, the RSI and MFI readings suggest that sentiment toward Polkadot remains cautious, with momentum steadily shifting in favor of sellers.
The absence of strong buying activity reinforces the probability of continued consolidation or further decline in the near term.
DOT Price to Continue Struggling
On the daily chart, Polkadot’s price continues to print lower highs despite brief upward attempts.
The Awesome Oscillator (AO) stays deep in negative territory with consecutive red bars at –0.46, confirming strong bearish momentum and showing that sellers are tightening their hold.
The 20 EMA supports this outlook, sitting above the candlesticks and acting as a barrier against any upward movement.
On-chain data indicate that DOT’s open interest has decreased by 5.29%, suggesting that both retail participants and market makers are retreating and anticipating further downside volatility.
If this momentum continues, DOT’s price could fall further, setting a new low in the coming days.
A look at the Fibonacci levels reveals that DOT is currently at the 0 Fib level, trading at $2.78, with a long red candlestick ready to push it below this level.
On the other hand, if DOT’s price manages a rebound, it could break above the 0.236 Fib level at $3.36.
If that were to happen, it would invalidate the bearish outlook.
